Aveta, Nexstar break; Harrah's rises; American General tweaks deal; Intersil, Ikaria set talk

By Sara Rosenberg

New York, April 13 - Aveta Inc.'s and Nexstar Broadcasting Inc.'s credit facilities allocated and freed up for trading during Tuesday's market hours, with both companies term loans quoted atop their original issue discount prices.

Also in trading, Harrah's Entertainment Inc.'s term loans were stronger as the company announced plans for a new bond deal that will be used in part to pay down some revolving credit facility borrowings.

Over in the primary market, American General Finance Corp. revised the Libor floor on its term loan, firmed up the size and the original issue discount, and asked for commitments to come in by late afternoon.

Additionally, Intersil Corp. and Ikaria Holdings Inc. came out with price talk on their proposed credit facilities as the transactions were presented to lenders during the session, and Telcordia Technologies Inc.'s launched its new deal as well.

Aveta frees to trade

Aveta's credit facility hit the secondary market late in the day, with the $300 million five-year term loan B quoted at 98¼ bid, 98¾ offered, according to a trader.

Pricing on the term loan B is Libor plus 600 basis points with a 2% Libor floor, and it was sold at an original issue discount of 97. There is call protection of 102 in year one and 101 in year two.

During syndication, pricing firmed at the wide end of initial talk of Libor plus 575 bps to 600 bps.

Bank of America, Citigroup and Jefferies are the lead banks on the $360 million deal, which also includes a $60 million five-year revolver.

Proceeds will be used to refinance existing debt and to fund a dividend payment to shareholders.

Aveta is a Fort Lee, N.J.-based medical management company caring for 232,000 Medicare beneficiaries and about 300,000 commercial members in Puerto Rico, California, Arizona and Illinois.

Nexstar breaks

Also freeing up for trading on Tuesday was Nexstar Broadcasting's credit facility, with the $100 million term loan quoted at 99¾ bid, no offers, according to a trader.

Pricing on the term loan is Libor plus 400 bps with a 1% Libor floor, and it was sold at an original issue of 99.

The company's $175 million credit facility also includes a $75 million revolver that is priced at Libor plus 400 bps as well.

Bank of America is the lead bank on the deal that was syndicated to existing lenders only.

Proceeds are being used to refinance and downsize the Irving, Texas-based television broadcasting company's existing credit facility.

Harrah's inches higher

Harrah's Entertainment's term loans gained some ground in trading after the company said that it would be selling second-priority senior secured notes that would be used to repay revolver debt, according to traders.

On the news, the company's term loan B-1 was quoted by one trader at 88¾ bid, 89¼ offered, up from 88½ bid, 89 offered, and by a second trader at 88½ bid, 89 offered, up from 88¼ bid, 88 7/8 offered.

The term loan B-2 was quoted by the first trader at 88¾ bid, 89¼ offered, up from 88½ bid, 89 offered, and by the second trader at 88 5/8 bid, 89 1/8 offered, up on the bid side from 88½ bid, 89 1/8 offered.

And, the term loan B-3 was quoted by the first trader at 88 1/8 bid, 88 5/8 offered, up from 88 bid, 88½ offered, and by the second trader at 88½ bid, 89 offered, up from 88¼ bid, 88 7/8 offered.

Harrah's redeeming notes

Harrah's will use the remaining proceeds its $750 million notes offering to redeem its 5.5% senior notes due 2010, 8% senior notes due 2011 and 8.125% senior subordinated notes due 2011, and for other general corporate purposes.

The company was initially expected to sell $500 million of notes, but the deal was later upsized.

Harrah's is a Las Vegas-based provider of branded casino entertainment.

American General trims floor

Switching to the primary market, American General Finance reduced the Libor floor on its five-year senior secured term loan (B1) to 1.75% from 2%, according to sources.

In addition, the size of the term loan firmed at $3 billion from the "up to $3 billion" description at launch, and the original issue discount finalized at 981/2, the tight end of the 98 to 98½ talk, sources said.

Prior to launch, the term loan size was expected to be $2 billion, but it was talked higher than that at the actual bank meeting as a result of an early positive response from investors.

The spread on the term loan ended up in line with initial talk at Libor plus 550 bps.

American General readies allocations

Allocations on American General Finance's term loan are anticipated to go out on Friday, being that commitments were due from lenders on Tuesday afternoon, sources remarked.

Bank of America is the lead bank on the deal that will be used to repay existing debt and fund lending activities.

The borrower under the facility will be a newly formed, wholly owned special purpose subsidiary of the company.

American General is the Evansville, Ind.-based consumer finance unit of American International Group.

Intersil price talk

Intersil held a bank meeting to kick off syndication on its proposed $465 million credit facility (Ba2/BB+), and in connection with the event, pricing guidance was announced, according to market sources.

The $390 million six-year senior secured term loan was launched with price talk in the Libor plus 350 bps area with a 1.5% to 1.75% Libor floor and an original issue discount of 99, sources said.

By comparison, recent filings with the Securities and Exchange Commission had pricing on the term loan at Libor plus 375 bps if the rating is Ba3/BB- or better and Libor plus 400 bps if the rating is B1/B+ or lower. The filings also said that the term loan would carry a 1.75% Libor floor and would be offered with an original issue discount of 99.

As for the company's $75 million 31/2-year revolver, it was launched with price talk in the Libor plus 325 bps area, subject to a leverage based grid, with a 50 bps undrawn fee, a 1.5% to 1.75% Libor floor and an original issue discount of 981/2, the source continued.

Intersil lead banks

Morgan Stanley and Bank of America are the lead banks on Intersil's credit facility that will be used to help fund the acquisition of Techwell Inc. for $18.50 per share.

Net of Techwell's cash and equivalents, the transaction values Techwell at about $370 million.

Closing on the acquisition is expected to occur during Intersil's second quarter, subject to customary regulatory approvals and the satisfaction of other transaction conditions, including the tender of at least 50% of Techwell's outstanding shares.

Intersil is a Milpitas, Calif.-based designer and manufacturer of high-performance analog and mixed-signal semiconductors. Techwell is a San Jose, Calif.-based fabless semiconductor company.

Ikaria guidance emerges

Another deal to see price talk surface was Ikaria Holdings, as it, too, launched its credit facility to investors, according to a market source.

The $320 million six-year term loan is being talked at Libor plus 400 bps with a 2% Libor floor and an original issue discount of 99.

And, the $40 million five-year revolver is being talked at Libor plus 400 bps with a 75 bps unused fee, a 2% Libor floor and a 200 bps upfront fee, the source said.

Credit Suisse is the lead bank on the $360 million deal (B1/BB-) that will be used to refinance existing debt and fund a dividend.

Ikaria is a Clinton, N.J.-based biotherapeutics company whose acute care products and therapies address the needs of critically ill patients.

Telcordia launches

Also launching with a bank meeting on Tuesday was Telcordia Technologies' proposed $580 million senior secured credit facility (B1/B+).

As was previously reported, the facility consists of an $80 million five-year revolver and a $500 million six-year first-lien term loan.

The revolver is being talked at Libor plus 450 basis points with a 75 bps commitment fee, and the term loan is being talked at Libor plus 500 bps to 550 bps.

Both tranches include a 2% Libor floor and are being offered at an original issue discount of 98.

Credit Suisse is the lead bank on the deal that was presented to lenders at 3 p.m. ET at the New York Palace.

Telcordia recapitalizing

Proceeds from Telcordia's credit facility will be used to help fund a recapitalization, under which the company is tendering for any and all of its $555 million of senior secured floating-rate notes due 2012 and any and all of the $254.68 million of 10% senior subordinated notes due 2013.

Other funding for the tender offer is expected to come from a proposed private placement of new senior secured notes and cash on hand.

The tender offer will expire on May 6.

Telcordia is a Piscataway, N.J.-based developer of fixed, mobile and broadband communications software and services.

Chaparral Energy closes

In other news, Chaparral Energy Inc. closed on its new $450 million four-year senior revolving credit facility, according to a news release.

JPMorgan acted as the lead bank on the deal that was obtained in connection with CCMP Capital Advisors LLC's acquisition of a 37% ownership stake in Chaparral for $345 million.

At close, $175 million was drawn under the revolver.

Chaparral is an Oklahoma City-based independent oil and natural gas production and exploitation company.

Information Solutions closes

Information Solutions Co. closed on its new $850 million credit facility (Ba2/BB+), consisting of a $500 million revolver due in 2012 and a $350 million term loan due in 2016, according to a news release.

JPMorgan acted as the lead bank on the deal that is being used to refinance existing bank debt and for general corporate purposes.

The facility was done in connection with the pending separation transaction by the First American Corp., currently targeted for June 1, in which Information Solutions and the Financial Services Group will become separate public companies.

As part of the transaction, First American, which will be the parent company of the Financial Services Group, obtained a $400 million partially secured facility due in 2013 that contains customary financial and operating covenants.

Information Solutions is an information services business.

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